The Prime Minister, Julia Gillard, is pushing to overturn a ban on selling uranium to India.
This follows an agreement by the US to support the civil nuclear programme in India, which is seen by Washington as a counterweight to China.
Australia has refused to sell nuclear material to India because it has not signed the Nuclear Non-Proliferation Treaty. Ms Gillard's Labor party will debate lifting the ban at its conference next month. Asia's third-largest economy has long complained about the ban.